GF restates FY96, 97 earnings
An HHBR Staff Report
Graham-Field Health Products (Bay Shore, NY) reported its financial results for 1Q99 ended March 31, as well as FY98 ended Dec. 31. The FY98 results included restated financial results for FY96 and FY97. The results are consistent with preliminary results announced May 18.
For 1Q99, the company reported revenues of $85.5 million, compared to restated revenues of $98.3 million in 1Q98. The revenue decline is due to the company’s tighter credit policy, as well as other factors.
The company posted a net loss of $7.4 million, 24 cents per share, in 1Q99, compared to a 1Q98 net loss of $1.7 million, 6 cents per share.
"We are focused on increasing cash flow from operations through a series of initiatives designed to improve the company’s performance," said President/CEO John McGregor, who was just appointed in March. "And at the same time, we are evaluating the feasibility of selling all or parts of the business. As previously announced, the company has retained Warburg Dillon Read LLC to assist in that evaluation."
For FY98 ended Dec. 31, the company reported revenues of $380.9 million, and a net loss of $49 million. The net loss includes all non-recurring, restructuring, and merger-related charges of $20.6 million, and a charge of $18.3 million relating to the write-off of the company’s deferred tax asset.
The company restated financial results for 1Q, 2Q, and 3Q98 to correct for certain improperly recorded transactions. The adjustments are not related to the company’s audit committee investigation, announced in March. The adjustments relate primarily to previously unrecognized stock compensation charges and previously recorded estimated separation charges, which increased the net loss in 1Q98 by $971,000, and in 2Q98 by $249,000, and which decreased the net loss in 3Q98 by $739,000.
Restated results for FY97 and FY96 revenues were $262.8 million and $143.3 million, respectively. Including charges, the restated net loss in FY97 was $26.4 million, and the restated net loss in FY96 was $13.6 million.
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